A novel Index-based quantification approach for port performance measurement: a case from Indian major ports

Abstract

ABSTRACT This paper develops a unified port performance index (PPI) considering different cargo categories and the multi-dimensional nature of port performance indicators/dimensions. This study has used the quintile method to construct PPI. Further, the PPI obtained from the quintile method is compared with weighted unified index (PPI PCA ) using principal component analysis (PCA), extensively used for index development in the literature. A pilot index development is demonstrated using secondary panel data for 12 major Indian ports on five significant dimensions, namely, operations, physical infrastructure, technical infrastructure, finance, and socio-economic. Results show that the JNPT port outperforms all other ports under the container cargo category. Likewise, Kandla port in the liquid port category and Paradip port in the other (dry & break bulk) cargo category are on top. Also, qualitatively similar results and insights are obtained with the PPI PCA . Subsequently, the panel data regression and efficiency analysis are performed to demonstrate the utility of the proposed index. The results affirm that the operations, physical infrastructure, and socio-economic dimensions have a positive and significant impact on port financial performance. The present study operationalises some key unexplored port performance indicators/dimensions that can enable effective decision-making.